The Mortgage Bankers Association has reported on trends from 2017.
While inventory was down almost 15percent home sales actually were up 2 percent. The lack of inventory also drove a nearly 7 percent increase in home prices over 2016.
The number of homes listed for sale in December was down 3.0% which means the trend of lower inventory and higher prices is likely to continue into 2018.
Parts of CA are the hardest hit with San Jose having the the lowest inventory and the highest price jump of nearly 32%.
San Diego and other parts of Southern CA are also affected by the natural disasters of 2017. Fires have leveled homes from Santa Barbara to San Diego.
The floods in Florida and Texas are also putting a strain on getting enough construction workers to build new construction in Southern CA. The crack down on immigration has also affected the availability of skilled and unskilled labor.
In summary, it looks like prices and interest rates will continue to climb as inventory remains extremely tight.
What is happening you your area?
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